LONDON, Sept 24 (Reuters) - Copper prices slipped on Monday, but held near 10-week highs hit last week as the market waited to see how the U.S.-China trade dispute would develop after both countries imposed new tariffs on imports.

Benchmark copper on the London Metal Exchange traded down 0.7 percent at $6,320 a tonne in official rings. The metal, seen as a gauge of economic health, hit $6,382.5 on Friday, a gain of 4.62 percent, the largest one-day rise since May 2013.

Friday's rally was mainly due to tariff levels that were much lower than expected.

"The market was fretting U.S. tariffs could be as high as 25 percent from the start. It was a relief rally," Societe Generale analyst Robin Bhar said. "Fundamentals are pretty sound, demand is strong."

TARIFFS: U.S. tariffs on $200 billion of Chinese goods and retaliatory tariffs by Beijing on $60 billion of U.S. products took effect on Monday.

The United States will levy tariffs of 10 percent initially, rising to 25 percent at the end of 2018. Beijing has imposed rates of 5-10 percent and warned it would respond to any rise in U.S. tariffs on Chinese products accordingly.

STOCKS: Strong copper demand can be seen in stocks held by LME-registered warehouses, which at 214,350 tonnes are down more than 40 percent since late March and near their lowest since January.